Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q3 FY2025 Earnings Presentation
48 slides from Satin Creditcare Network's earnings presentation, February 2025
Slide 1: Investor Presentation February 2025
INVESTOR PRESENTATION FEBRUARY 2025 Growing with Grit Conquering with Capability
Slide 2: Presentation Path and Cautionary Statement
Presentation Path A B C D Key Business Our Investment Our Operational & The Tale Behind Our Highlights Strengths Financial Prowess Company 03 - 20 21 - 28 29 - 37 38 - 47 Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company
Slide 3: Promoter Seeded, Professionally Run Organisation
Promoter Seeded, Professionally Run Organisation 34 Years of Legacy A resilient organization with over three decades of experience Successfully weathered numerous crises, emerging stronger each time, proving our long-term stability and adaptability Promoter Skin in the Game A unique strength t
Slide 4: Positioned as the Top Performer Across the Sector
Positioned as the Top Performer Across the Sector Rs. 10,778 crore Rs. 31 crore 3.9% 5.0% AUM PAT for Q3FY25 GNPA Credit Cost^ (annualized) Consistency in disbursement on PAT for 9MFY25 of Rs. 176 crore; Within the guided range PAR reversal visible from Nov’24 a QoQ basis, leading to growth 14 conse
Slide 5: Stringent Underwriting Checks, Prior to Implementation of SRO Guardrails
Stringent Underwriting Checks, Prior to Implementation of SRO Guardrails I. Number of microfinance lenders per borrower II. Total microfinance indebtedness limit of Rs. 2 Lacs At the time of At the time of Lender Overlap (Clients %) Loan Exposure disbursement disbursement Only Satin 52.5% Below 50k
Slide 6: Narrowing the Funnel, Reduction in Fresh Forward Flows Visible
Narrowing the Funnel, Reduction in Fresh Forward Flows Visible PAR trend NNPA & Coverage Ratio Arresting Fresh Flows Overall Coverage 83.0% 83.0% 91.4% 99.2% 99.2% 6.8% Ratio 6.4% 5.0% 62.3% 65.0% 5.7% 60.6% 60.4% 60.5% 61.1% 5.2% 60.0% 4.0% 3.9% 3.5% 4.6% 4.9% 55.0% 4.3% 3.0% 2.7% 2.4% 2.5% 2.4% 50
Slide 7: Performance of Top 4 states – Satin vs Industry
Performance of Top 4 states – Satin vs Industry On-book Industry PAR 90: 3.9% CE % State Portfolio PAR 1 PAR 90 (NBFC-MFI’s) 9MFY25 (Rs. crore) PAR 1 Uttar Pradesh 2,228.7 96.9% 5.6% 3.4% 15.6% Bihar 1,176.2 96.8% 6.8% 3.5% 14.0% Assam 908.7 100.0% 0.4% 0.2% 32.0% 69% West Bengal 700.4 95.2% 7.7% 4.
Slide 8: Update on Stressed States Identified Earlier
Update on Stressed States Identified Earlier % of On-book PAR 1 Satin PAR 1 CE % Portfolio Satin vs Industry QoQ change 9MFY25 Punjab 5.0% 4.6% vs 32.0% -240 bps 93.9% Improved Rajasthan 3.9% 7.8% vs 21.2% -303 bps 93.0% States Maharashtra 1.2% 8.5% vs 8.7% -310 bps 92.2% Odisha 4.5% 18.1% vs 19.0%
Slide 9: Initiatives Undertaken to Address the Macro Challenges
Initiatives Undertaken to Address the Macro Challenges Sourcing to disbursement is ~39%, driven by stringent guidelines, scorecards and underwriting aligned with RBI and SRO guidelines Stopped disbursement to new to credit clients in 749 branches No new to Satin client acquisition in 180 branches To
Slide 10: Other Key Updates
Other Key Updates 14 profitable quarters in a row, despite sector headwinds Raised Rs. 6,216 crore during 9MFY25 at group level; maintaining healthy liquidity Healthy Capital Position with CRAR of 27.4% as on Dec’24 Stable and competent management team, with 9+ years of vintage of core team in the c
Slide 11: Awards & Accolades
Awards & Accolades ‘Best Microfinance Organization of the Recognized among ‘Top 50 Companies with Year 2024’ Award at the Global Inclusive Great Managers’ at the Great Managers Award Finance Summit 2024 for the 4th time 11
Slide 12: Guidance vs Performance
Guidance vs Performance Guidance FY25 Actual 9MFY25 AUM Growth Growth of 8% - 10% 10% YoY Credit Cost 5.0%^ 4.5% - 5.0% (Annualized) ^Our credit cost for 9MFY25 stood at 5.0% (annualized) against more than 12 On a standalone basis 8.5% as estimated by a credit rating agency
Slide 13: Consolidated Highlights – 9MFY25
Consolidated Highlights – 9MFY25 (YoY change) Rs. 12,128 crore Rs. 1,979 crore Assets Under Management Total Revenue Up by 10% Up by 24% 01 05 Rs. 7,568 crore Rs. 625 crore Disbursement 02 06 PPoP Up by 2% Up by 26% Snapshot 33.9 Lacs 03 07 Rs. 164 crore Active Clients Profit after Tax On similar le
Slide 14: Consolidated Financial Performance
Consolidated Financial Performance Particulars 9MFY25 Q3FY25 Q3FY24 Q2FY25 FY24 Gross yield (1) 22.01% 23.04% 22.53% 22.42% 21.37% Financial Cost Ratio(2) 8.73% 8.97% 9.33% 9.08% 8.60% Net Interest Margin(3) 13.29% 14.06% 13.20% 13.35% 12.78% Operating Expense ratio(4) 6.33% 6.88% 6.06% 6.60% 5.80%
Slide 15: Standalone Highlights – 9MFY25
Standalone Highlights – 9MFY25 (YoY change) Rs. 10,778 crore Rs. 1,815 crore Assets Under Management Total Revenue Up by 10% Up by 25% 01 05 Rs. 6,955 crore Rs. 610 crore Disbursement 02 06 PPoP Up by 1% Up by 29% Snapshot 33.2 Lacs 03 07 27.4% Active Clients CRAR Up by 4% Healthy Capitalisation 04
Slide 16: Standalone Financial Performance
Standalone Financial Performance Particulars 9MFY25 Q3FY25 Q3FY24 Q2FY25 FY24 Gross yield (1) 22.65% 23.81% 23.42% 22.95% 22.14% Financial Cost Ratio(2) 8.91% 9.12% 9.82% 9.27% 8.99% Net Interest Margin(3) 13.74% 14.69% 13.60% 13.68% 13.15% Operating Expense ratio(4) 6.13% 6.70% 5.94% 6.38% 5.60% Lo
Slide 17: Our Subsidiaries
Our Subsidiaries
Slide 18: SHFL - Leveraging the Outreach through Affordable Housing
SHFL - Leveraging the Outreach through Affordable Housing • AUM of Rs. 872 crore; 44% YoY growth • Opportunity to leverage on • 100% retail book; middle and low- SCNL’s vast geographical income group clients from Tier II presence; tapping the and below cities microfinance graduated • 31 active lende
Slide 19: SFL - Leveraging the Outreach through Retail MSME
SFL - Leveraging the Outreach through Retail MSME On-book AUM increased 50% Huge untapped potential of the missing middle YoY to reach Rs. 445 crore of small ticket business loans averaging <= Rs. 2 Lacs secured against collateral Leveraging SCNL Outreach – 2nd cycle Focus on secured retail MSME + c
Slide 20: Satin Technologies – Leveraging on In-house Technology
Satin Technologies – Leveraging on In-house Technology • Rolled out a wholly owned subsidiary focused on innovating and developing cutting-edge technological solutions across various industries, with a strong emphasis on financial services • Offers an advanced Human Resource Management System (HRMS)
Slide 21: Satin's Competitive Edge
Satin’s Competitive Edge Leading MFI Player With Diversified Financial Products catering to rural India Diversified Geographical Reach State of the Art Technology backed by robust IT infrastructure Strong Underwriting Capability Well-diversified Liability Profile Positive ALM with Ample Liquidity St
Slide 22: Diversified Product Offerings
Diversified Product Offerings Satin Creditcare Network Limited Satin Housing Finance Limited Satin Finserv Limited Product features MFI(1) Housing Finance MSME as of Dec’24 Start Date May’08 (JLG) Feb’18 Mar’19 Ticket Size Range Upto Rs. 100,000 Rs. 100,000 – 4,000,000 Rs. 100,000 – 100,000,000 Tenu
Slide 23: Diversified Geographical Presence
Diversified Geographical Presence Presence across 29 States and UTs 1,535 104 No. of Regional Offices No. of Branches 483 2.9 Lacs No. of Districts No. of Centers 96.9% Districts with <1% exposure Top 4 States Top 4 States (56%) 7.5% Uttar Pradesh 8.7% Next 6 states (27%) 25.5% Bihar West Bengal Rem
Slide 24: Well-diversified Liability Profile
Well-diversified Liability Profile Large Lender Base Product-wise Dec’24 75 Active Lenders 0.5% Top 10 Lending Partners % Share 7.9% State Bank of India 13% Term Loan & PTC 18.0% Bank of Baroda 10% Direct Assignment Bank of Maharashtra 10% 49.3% NCD SIDBI 4% ECB Blue Orchard* 5% 24.2% Commercial Pap
Slide 25: Positive ALM with Ample Liquidity
Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 27.7 27.2 25.9 24.3 18.2 17.8 17.3 16.0 FY22 FY23 FY24 9MFY25 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 31st Dec’24 (Rs. crore) Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Total Inflows Liquidity at the beg
Slide 26: Accomplished and Experienced Board of Directors
Accomplished and Experienced Board of Directors Mr. HP Singh Chairman Law Graduate and fellow of ICAI, veteran in financial inclusion Mr. Satvinder Singh Mr. Anil Kaul Mr. Joydeep Datta Non-Independent Independent Director Gupta Director Former MD, TATA Capital Independent Director Veteran in consum
Slide 27: Strong Management Team
Strong Management Team HP Singh Jugal Kataria Group Controller Chairman cum Managing Director Aditi Singh Anil Kwatra Sunil Yadav Manoj Agrawal Chief Strategy Officer Chief Business Officer Chief Information Officer Chief Financial Officer Vikas Wadhera Dhiraj Jha Amit Sharma Rupinder Kalia Chief Ri
Slide 28: Successfully Navigated Crisis During Legacy of Over Three Decades
Successfully Navigated Crisis During Legacy of Over Three Decades ❑ Implementation of best-in-class technology ❑ Strong Capitalization with Ample Liquidity • Reduced TAT • Capital Adequacy has improved from 18.3% in 2016 to 27.4% currently • Real-time data • Raised Rs. 1,259 crore equity capital Lea
Slide 29: Our Operational & Financial Prowess
Our Operational & Financial Prowess
Slide 30: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,224 1,286 1,393 1,535(1) 8,774 7,449 9,309 11,922(2) 12,705 11,131 12,896 16,970 29 1,519 26 23 24 483 1,969 1,533 404 405 421 1,909 15,451 10,736 11,363 9,222 FY22 FY23 FY24 9MFY25 FY22 FY23 FY24 9MFY25 Districts State
Slide 31: Business Details
Business Details Particulars Q3FY25 Q3FY24 YoY% Q2FY25 QoQ% AUM (Rs. crore) 12,128 11,074 10% 11,749 3% SCNL 10,778 9,811 10,463 On-book AUM 8,274 7,306 8,109 Assignment 2,503 2,497 2,353 Business Correspondence 1 8 0 SHFL 872(1) 607 850 SFL 479 657 435 Retail MSME 445 296 396 AUM Mix (Rs. crore) 12
Slide 32: Financial Details (Standalone)
Financial Details (Standalone)
Slide 33: Key Metrics
Key Metrics Gross Income (Rs. crore) Cost to Income Ratio 2,051 1,815 64.8% 1,753 54.3% 1,262 42.6% 44.6% FY22 FY23* FY24 9MFY25 FY22 FY23 FY24 9MFY25 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,177 1,218 6.2% 6.3% 6.1% 1,101 5.6% 656 423 264 176 40 FY22 FY23* FY24 9MFY25 FY22 FY23 FY24 9MFY25
Slide 34: P&L Statement
P&L Statement Particulars (Rs. crore) Q3FY25 Q3FY24 Q2FY25 9MFY25 FY24 Revenue Interest Income 487.6 441.9 511.3 1,509.5 1,670.3 Gain due to DA 90.5 74.4 59.6 194.5 257.0 Treasury Income 50.2 23.3 26.4 98.1 89.5 BC Income 0.0 0.0 0.0 0.0 0.1 Other Operating Income 3.8 8.0 3.6 13.0 33.7 Total Revenue
Slide 35: Financials (Subsidiaries)
Financials (Subsidiaries)
Slide 36: P&L Statement - SHFL
P&L Statement - SHFL Particulars (Rs. crore) Q3FY25 Q3FY24 Q2FY25 9MFY25 FY24 Revenue Interest and Fee Income 26.7 15.2 21.2 64.4 67.0 Treasury Income 0.9 1.7 0.7 4.4 5.2 Other income 2.6 7.2 6.2 12.1 20.2 Total Revenue 30.2 24.1 28.1 80.8 92.3 Expenses Finance cost 15.7 11.6 14.9 43.9 44.3 Employee
Slide 37: P&L Statement - SFL
P&L Statement - SFL Particulars (Rs. crore) Q3FY25 Q3FY24 Q2FY25 9MFY25 FY24 Revenue Interest and Fee Income 29.8 30.9 28.5 86.2 115.1 Treasury Income 0.7 0.9 0.8 2.7 3.9 Other income 0.6 0.2 0.5 1.6 2.4 Total Revenue 31.1 32.1 29.8 90.5 121.4 Expenses Finance cost 10.3 6.3 8.7 27.3 26.4 Employee be
Slide 38: The Tale Behind Our Company
The Tale Behind Our Company
Slide 39: Key Milestones - Business
Key Milestones - Business Reached 4.9 Lacs active Date of inception of Satin- Registers as NBFC clients & AUM of ~Rs. 580 October 16, 1990 with the RBI crore as on Mar’13; Converts Started JLG Model to NBFC-MFI in Nov’13; IPO and listing on DSE, Reached 8 Lacs active clients in May 2008 JSE and LSE(
Slide 40: Key Milestones – Fund Raising
Key Milestones – Fund Raising First private equity Raised Rs. 2.5 crore from Raised Rs. 18 crore from Raised Rs. 30 crore from Raised Rs. 28.4 crore of Raised Rs. 41.5 crore investment; Lok Capital in Nov’10 and Danish Micro Finance DMP, ShoreCap and MV equity from NMI from SBI FMO(1) Rs. 21.8 crore
Slide 41: Capital Structure
Capital Structure Promoter Group 25.3% Market Cap of Book Value^ Florintree Ventures LLP 36.2% ~ Rs. 1,663 crore Rs. 232/ share Key Institutional Investors Other FII's No. of Equity No. of Bodies Corporate Shares Shareholders 16.4% Retail & Others 11.05 crore ~53,000 1.6% 11.1% 9.4% Market • 15 roun
Slide 42: Our Business Model
Our Business Model Formation of Documentation Groups and Paper work MICROFINANCE & BEYOND 01 06 02 Social impact financing Follow up Income Generating of solar lamps, loans Long Term Loans (LTL) Loans (IGL) bicycles, water and Training sanitation facilities etc. of Groups 05 03 Micro Small & Medium
Slide 43: Customised Products as per Client Needs
Customised Products as per Client Needs Long Term Loan Madhya Vriddhi Loan Income Generation Loan (Vriddhi) (Prarambh) Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 15,000 Rs. 31,000 – Rs. 1,00,000 Rs. 10,000 – Rs. 45,000 Tenure: 12 - 24 months Tenure: 24 - 48 months Tenure: 24 - 30 mon
Slide 44: Operational Capabilities Backed by Robust Processes
Operational Capabilities Backed by Robust Processes Loan Life Cycle Key Initiatives Benefits Digitized Onboarding Detailed HHI assessment • Better Portfolio Quality as OTP validations at client onboarding compared to Industry Onboarding & disbursement level Geo tagging at every touch point in the on
Slide 45: Community Connect Activities Centered Around SDGs
Community Connect Activities Centered Around SDGs Enriching the Growth of Financial Literacy Workshops Students at GNA University with MFIN and Sa-Dhan This financial year, we continue to support In collaboration with the RBI and industry SROs, scholarships for underprivileged students at we conduct
Slide 46: Awards and Accolades
Awards and Accolades ▪ Dr. HP Singh bestowed with the ‘India’s Most Trusted Leader’ Award by GPTW, India ▪ Dr. HP Singh conferred as the ‘Pillar of the BFSI Industry’ at the Financial Express Modern BFSI Summit 2022 ▪ Dr. HP Singh received the 'CEO of the Year - Micro Finance Company' Award ▪ Mr. Ju
Slide 47: ESG - Being a Responsible Financial Institution
ESG - Being a Responsible Financial Institution ENVIRONMENTAL SOCIAL GOVERNANCE Green Building • Our strength lies in our ground level • Board comprises of 10 members; 8 • Satin’s headquarters – a green building – is knowledge and the strong bond that we have Independent directors of which 2 are wom
Slide 48: Contact Information
Contact Information Company (Investors & Media) : Ms. Aditi Singh Ms. Shweta Bansal Chief Strategy Officer GM - Investor Relations E: aditi.singh@satincreditcare.com E: Shweta.bansal@satincreditcare.com T: +91 124 4715 400 T: +91 124 4715 400 www.satincreditcare.com
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